NH Hotel Group’s relations with its suppliers are based on communication and transparency, to promote the development of innovative and sustainable solutions.
NH Hotel Group uses the Electronic Negotiation Platform in most bidding processes. This tool makes it possible, through the RFI (Request for Information) phase, to assess and analyze the legal, financial, environmental, operational and social and labor situation of suppliers who submit bids for contracts. This reduces the possible risks that suppliers could generate in future operations with the Company. For this initial assessment, specific documentation has to be submitted providing evidence of the veracity of the information provided.
This preliminary assessment is complemented with a subsequent screening that is intrinsic to the contract award process, based on compliance with the technical requests shown in the RFP (Request for Proposal). In this part of the process, suppliers have to accept both the Group’s Code of Conduct and the Coperama Code of Conduct which include environmental and labor commitments.
Subsequently, as part of the Approval Contract, the SLA (Service Level Agreement) is applied which penalizes any deviation in the service offered by the suppliers. Penalites may range from minor breaches, applying a monetary penalty to the amount billed, to serious or very serious breaches that entail the automatic termination of the contract.
NH Hotel Group establishes a Procurement Policy that ensures that all contract bidding procedures are carried out under the same criteria of transparency, rigor and equality of opportunity. In 2018, the Award Committee participated in a total of 16 procedures, mostly for hotel refirbusihments. The Company has implemented a strict and detailed procedure for assessing and selecting new suppliers, based on social, ethical and environmental criteria.
The aim is to gain in-depth knowledge of the behavior and practices of NH Hotel Group’s suppliers, selecting only those that, in addition to offering the best negotiating conditions, share the Company’s principles and commitments described in the Code of Conduct.
Code of Conduct
During 2018, a total of 253 new suppliers globally signed up to the NH Hotel Group Code of Conduct. Thus, in 2018 the number of Ethical Codes with active suppliers has reached a total of 1,646 codes signed.
Since 2015, NH Hotel Group has assessed its suppliers according to several parameters related to environmental management, environmental protection, carbon footprint reporting or alignment with Sustainble Development Goals (SDG), through a Supplier Qualification module on the Electronic Negotiation Platform.